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10.5. Creative Industry Tax Reliefs

Creative industry tax reliefs (CITR) are a group of 4 Corporation Tax reliefs that allow qualifying companies to claim a larger deduction, or in some circumstances claim a payable tax credit when calculating their taxable profits.  This is aimed at film, animation, high-end television and video games development.  

These reliefs work by providing an additional 100% deduction of qualifying expenditure, or where it is loss making, a payable tax credit equal to 25% of the qualifying losses surrendered. The HMRC has issued an updated guidance as on 1 January 2017, providing details of the various reliefs available and conditions applicable for claiming creative industry reliefs. The guidance is available at:

https://www.gov.uk/guidance/corporation-tax-creative-industry-tax-reliefs